Plansmith Blog

After 40 years in this industry, I’ve seen the same pattern in too many boardrooms: planning treated as a static "check-the-box" exercise. In today’s volatile market, that is a liability.

Having worked with thousands of financial institutions, I’ve seen the full spectrum of planning processes. My own journey — from running our support department for years to serving as a hands-on budget and ALM model operator for our clients — has given me a front-row seat to the challenges you face. I’ve helped institutions prepare for everything from intense regulatory exams to high-stakes board presentations. Needless to say, I have seen exactly what works and what doesn't when it comes to effective planning.

There’s one topic I hear consistently come up in discussions amongst financial institution leaders: succession planning. Or, as I call it, The Succession Elephant – the awkward, looming, unsolved topic occupying space in boardrooms across the country. Leaders know turnover is happening. They know it’s an aggressive risk. Yet they often don’t know where to start tackling it.

This very topic was a core focus of my breakout session at the FMS Forum in New Orleans this past June. Because it's so critical – yet rarely nipped in the bud – I wanted to share a strategic framework for solving 'the succession elephant' before facing unexpected vacancies and their broader implications without a safety net in place.

If we’re being honest, the annual planning season is rarely met with a standing ovation. For many financial institution leaders, it feels like a chore – a box to check for the regulators or a heavy document destined to collect dust on a shelf.

The problem is that many management teams are still operating under the old rules of planning. These misconceptions keep brilliant leaders buried in "spreadsheet land," where they spend their time managing data instead of managing the organization.

If you want to move from a static plan to a dynamic strategy, it is time to debunk these five common myths.

I'm thrilled to share a recap of last week’s first-ever Plansmith Forum, which was an incredible success!

Attendance & Experience

We welcomed 21 attendees representing a wide range of leadership and management roles from financial institutions across the country. Hosted at the Renaissance Hotel near our corporate offices in Schaumburg, IL, the event delivered two full days of learning, collaboration, networking, and social engagement with the Plansmith team — and, most importantly, with industry peers.

“Can’t stress enough the importance of talking with other Compass users.”

“Wonderful event for new and experienced users!”

As we navigate 2026, the financial landscape continues to evolve at a breakneck pace. From my time as a Senior Examiner and Capital Markets Specialist, I've seen firsthand what separates institutions that thrive from those that merely survive. In 2026, financial leaders must prioritize what I’ll call the "4 Ds": Deposits, Data, Decay, and Documentation. This new order reflects the true hierarchy of risk and strategic necessity. Ignore these at your peril; master them, and you secure a competitive and regulatory advantage.

I’ve always said that deposit pricing (a/k/a “betas”), decay rates, and asset prepayments are “the big three” when it comes to interest rate risk (IRR) model assumptions. Why is that? Well, it’s because those are the ones that most people think have the greatest impact on model results, and, as a result, those are the ones that examiners tend to look at the closest. And while I don’t always agree that prepayments matter all that much (depending on the duration of any given institution’s intermediate- and longer-term assets), the current falling rate environment is certain to again shine the spotlight on them at regulatory examinations. As such, we thought it would be a good time to review a few key concepts and then go through the best practices to be sure you’re exam ready. So first, the key concepts:

For many bank leaders, "peer analysis" has long been treated as just another checkbox – useful for satisfying board expectations or preparing for exams, but rarely central to true strategic planning. That mindset, however, is rapidly shifting, and for good reason.

When approached strategically, peer data becomes a potent force. It can uncover hidden inefficiencies, highlight competitive strengths, and drive sharper, more confident decisions. This isn't about comparing for comparison's sake; it's about understanding your bank's performance in its true context and leveraging that clarity to lead more effectively.

At Plansmith, we're helping institutions transform this process. With the BankersGPS Peer Module, we turn raw peer data into powerful decision-making support, empowering leadership teams to elevate both performance and accountability.

What do massive shifts in deposits, economic uncertainty, and falling interest rates have in common? The potential to wreak absolute havoc on your institution’s liquidity position. One unplanned or mismanaged situation could mean falling out of policy limits, or worse.

Over the past several years, the banking industry has seen seismic shifts in deposits as trillions of dollars in Government stimulus were released into the economy, followed by a period of dramatic increases in market rates which then resulted in massive amounts of low yielding balances migrating into higher-paying CDs and non-bank investment products. Now, as deposit rates have begun to fall, we're seeing depositors look for higher yields both inside and outside the banking industry.

"Which measurements would you consider highest priority in 2026?"

I’d say that Net Interest Margin (NIM) changes and Economic Value of Equity (EVE) should continue to be the primary focus of IRR management in 2026. Gap calculations rarely give the full picture (they're focused on timing of repricing, not magnitude), and Duration measurements can be difficult to understand. Given the rate drops we've seen so far and the expectations for further decreases, all financial institution managers and directors should have a clear understanding of how future market rate changes could impact both shorter-term earnings (i.e., NIM in the next one and two years) and longer-term capital values (i.e., EVE).